How Are Work Credits Calculated for Social Security?
Demystify Social Security work credits: learn how your earnings history builds the foundation for your future benefit eligibility.
Social Security provides financial protection to millions of Americans during retirement, disability, and for surviving family members. Eligibility for these benefits relies on “work credits,” which measure an individual’s earnings history and determine access to various Social Security programs. Understanding how work credits are earned and accumulate is fundamental for navigating the Social Security system effectively.
Understanding Work Credits
Work credits are units earned based on annual earnings reported to the Social Security Administration (SSA). They represent an individual’s total wages or self-employment income over a calendar year, not hours worked. This system ensures individuals contribute to Social Security through their earnings, qualifying them for future benefits.
Work credits simplify eligibility by focusing on earnings, not employment duration. An individual can earn all available credits for a year quickly if earnings meet the required threshold. Work credits remain permanently on an individual’s Social Security record, accumulating over a working life to determine benefit eligibility.
Calculating Your Work Credits
Earning Social Security work credits is tied directly to your annual income. For 2025, you earn one work credit for every $1,810 in covered earnings. This amount adjusts annually to reflect changes in the national average wage index, keeping the value of a work credit consistent over time.
You can earn a maximum of four work credits each year. To earn all four credits in 2025, an individual must have covered earnings totaling $7,240. For instance, earning $1,810 provides one credit, $3,620 yields two, $5,430 yields three, and $7,240 or more provides the maximum four credits for that year.
Earnings above the $7,240 maximum do not result in additional credits for that year. For instance, someone earning $100,000 in 2025 receives the same four credits as someone earning $7,240. Consistent, moderate earnings over time can accumulate sufficient credits for benefit eligibility, as the focus is on meeting the annual earnings threshold.
How Work Credits Determine Eligibility
Work credits determine eligibility for Social Security benefits like retirement, disability, and survivor benefits. The number of credits needed varies by benefit type and age. For retirement, most people need “fully insured” status, requiring 40 work credits (10 years of work). These credits accumulate throughout a working life and do not need to be consecutive.
Eligibility for disability benefits depends on the age when disability began, requiring a “recent work test” and a “duration work test.” If disability occurs before age 24, 6 credits are typically needed within the 3-year period ending when it started. For ages 24 through 30, credits are usually needed for half the time between age 21 and disability onset. Individuals aged 31 or older generally need at least 20 credits earned in the 10-year period preceding their disability.
Survivor benefits also rely on work credits, with the number needed depending on the deceased worker’s age at death. No one needs more than 40 credits for survivor benefits. A special rule allows a deceased worker’s children and a spouse caring for them to be eligible if the worker earned 6 credits (1.5 years of work) in the 3 years before death. “Currently insured” status, requiring at least 6 credits during a recent 13-quarter period, can qualify individuals for limited benefits like a lump-sum death payment or benefits for a spouse and children, but not old-age retirement benefits.
Accessing Your Work Credit History
Regularly reviewing your Social Security work credit history ensures your earnings are accurately recorded and you are on track for future benefits. The most convenient way to access this information is through a personal “my Social Security” account on the Social Security Administration’s (SSA) website.
A “my Social Security” account provides secure access to your Social Security Statement, detailing your complete earnings history and earned work credits. This online portal also estimates future retirement, disability, and survivor benefits. To set up an account, you need your Social Security number, a valid email address, and to complete identity verification, often through services like Login.gov or ID.me.
For individuals aged 60 and older without an online account, the SSA automatically mails a Social Security Statement three months before their birthday. The Social Security Statement is a comprehensive document that helps you understand your standing and plan. It allows you to verify reported earnings and identify discrepancies for correction with the SSA.